The small-cap tracking Russell 2000 experienced a major drop on Monday and the broader markets followed, as it appeared investors were reacting to last week’s record-setting performance with a skeptical eye.
The iShares Russell 2000 Index Fund (IWM) dropped 1.55 percent on the day, as investors bearish on the market’s ability to sustain momentum pulled their money out of smaller growth plays. It was hardly a case of a clear delineation between growth versus blue chip, however, with several large caps ending the day on a downward trend as well.
International Business Machines (IBM) ended the day nearly 2 percent lower, leading the Dow’s loss column. In all, only six of the DJIA’s 30 components ended the day in the black, notably telecom plays Verizon (VZ) and AT&T (T) .
On the Nasdaq, sector darling Micron Technologies (MU) shed 2.59 percent, followed by Electronic Arts (EA) and TripAdvisor (TRIP) . The S&P’s biggest loser on the day was apparel manufacturer Fossil ($FOSL), who dropped a whopping 10.27 percent on a particularly bad earnings outlook.
Results for May 14, 2014
- Standard & Poor’s 500: -.45 percent to 1,889 points
- Dow Jones Industrial Average: -.61 percent to 16,641 points
- NASDAQ Exchange: -.71 percent to 4,101 points
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